With the stock over $1600 Canadian again it is worth reminding ourselves of a couple of things:
its not the share price that counts as much as the look through earnings and long term capital allocation.
I have held my shares for many years and added when the pricing seemed crazy low, and I had funds available.
I have no plans to sell any shares, at times holding on has been somewhat painful!
I too have been wondering about the Sleep Country Purchase ...
Having Just Read The Outsiders (thorndike)
If you have not read it, I think it sheds lots of Light on the hidden Fairfax master plan ...
Most of these CEOs were frugal and financially oriented enough to be able to pivot to an opportunity
no one else saw but in hindsight was brilliant.
I will share some thoughts
I would rather see buy backs...
my .02 we are not seeing the full Sleep picture
I would speculate that they are working Recipe MK2....
They are looking to acquire brilliant operational talent in scalable businesses and build that way.
Look at the Talent Pool Now Running the subs and operations.
They will assemble a portfolio of Home oriented businesses.
We would like to see them hold a Brilliant business forever but if the assembled package can be used as currency down the Road ... then they spin off...
They will be accused of having NO MOAT, are under appreciated, and underpriced
and we will all get a chance to absorb more shares.
I do not think I have attended an AGM where Prem has not mentioned Henry Singleton.